Timing of Stock Sales Favors Lululemon Insider

Lululemon Athletica Inc. Chairman Dennis "Chip" Wilson sold $50 million worth of stock in the company four days before the shares plummeted on the unexpected news that the yoga-gear maker's chief executive would step down.

The sales were made as part of a prearranged trading plan known as a 10b5-1, which lets executives buy or sell shares in their own company according to preset conditions even if they have inside...